Using the desktop Turbotax Business for a trust (form 1041) with a single beneficiary. There is a disagreement between the value for line 4a on the Form K1 (long term gain distributed to the beneficiary) and the value in line 18a column 1 on the Schedule D. These two values should be equal, and the difference between the total long term gain for the trust and the amount distributed to the beneficiary should show in line 18a column 2 (Turbotax initally sets this to zero). The effect of this error is that the schedule D tax calculation is wrong, effectively treating the trust's share of the capital gain as ordinary income. Turbotax allows you to manually correct the value in line 18a column1 and set it equal to the value from the K1. After making this change, schedule D is correct, but then Turbotax changes the values in the K1, making them incorrect.
